Question 1

What is a mortgage?

Accepted Answer

A mortgage is a type of loan that can be used to buy property, which is then paid back via monthly instalments. It’s secured against your home, which means that you may lose your property if you can’t keep up with the repayments.

There are two types:

Repayment: Each monthly instalment is paying back the initial sum you borrowed (plus the interest)
Interest-only: The monthly repayments are covering only the interest being charged on your loan and none of the original borrowed capital

The average mortgage lasts for 25 years – but, they can range from six months to 40 years depending on your circumstances.

Question 2

What’s the difference between a variable and fixed rate mortgage?

Accepted Answer

When securing a mortgage deal, a rate will be agreed – either variable or fixed rate.

A variable rate means that the interest rate you pay on your mortgage can change, depending on a number of factors, including changes with the Bank of England's base rate.

Fixed rate ensures the interest you’re charged remains the same for a set timeframe – typically, between two and five years. At the end of this fixed period, it’s essential to review your mortgage options again, otherwise it will automatically be switched to a variable rate.

Depending on your circumstances and mortgage needs, we can consider which mortgage rate option is best suited to you.

Question 3

What is a mortgage broker?

Accepted Answer

A mortgage broker is a person or company that can arrange a mortgage between you (the borrower) and a mortgage lender. They work with you to help you decide on the correct mortgage for you and your circumstances.

Question 4

Why use a mortgage broker?

Accepted Answer

Mortgage brokers can save you time and money. Life is busy, and shopping around for mortgage deals and liaising with solicitors yourself is time consuming - and often complicated.

And, unlike high street banks or organisations that limit you to one lender, brokers have access to a much wider range of products, including exclusive deals that aren’t available directly to consumers. In fact, Win Financial have access to over 70 different lenders to find the best mortgage deal for you.

A broker will assess your current financial situation, extensively search the market to find the most appropriate deals to match your criteria, and suggest the most suitable mortgage for your current needs.

Question 5

What do I need in order to discuss my mortgage with a broker?

Accepted Answer

To allow a mortgage broker to understand your situation, review your options and apply for a mortgage on your behalf, you will need to provide them with the following:

-        Latest three months wage slips
-        Latest three months bank statements (showing bills going out and wages coming in)
-        Photographic ID (Driving Licence or Passport)
-        Recent Mortgage Statement (if applicable) 
-        Two years’ accounts (if self-employed)

Question 6

Will I pay extra for a mortgage broker?

Accepted Answer

Mortgage brokers charge different fees dependent on the work involved.

This will be discussed with you on a case-by-case basis prior to the implementation of work.

Question 7

How much can I borrow?

Accepted Answer

How much you’re able to borrow depends on multiple factors - including your age, your employment history, your current financial situation, and your credit score.
 
We can discuss your options with you, and let you know your mortgage eligibility based on all of these factors.

Question 8

How much do I need for a deposit?

Accepted Answer

This is different for each individual and each property purchase. For example, the deposit required will be impacted by the size and type of property, the type of purchase (i.e., residential or buy-to-let), and your personal circumstances. 
 
Ideally, the minimum deposit you should be looking to secure is 5% of the property purchase price.

Question 9

What if I have a poor credit rating (or no credit rating?)

Accepted Answer

We understand that mortgages can be daunting, especially if you know you have a poor credit rating. But, don’t let this put you off – we’re here to help, regardless of your circumstances. A poor (or no) credit history doesn’t have to be a barrier to achieving your property dreams.

We have access to over 70 different lenders, all of which offer alternative products and have differing criteria. And, in most cases, we can help to find something suitable for your needs that is compatible with your current financial situation.

But, in the meantime, if you’re looking to improve your credit history, then there are a few
things you can do: 
Register on the Electoral Roll
Reduce your unsecured credit
Reduce your available credit
Pay by Direct Debit
Build your credit history

Question 10

What if I’d like to release equity from my current property?

Accepted Answer

You may have a wish to invest in home improvements or to allow for further investments (for example purchasing buy-to-let properties).  Dependent on affordability, and the equity available, we can support you to unlock cash from the value of your property.

Please note that this entails borrowing additional funds against your existing mortgage, meaning repayments and/or the mortgage term will be increased.

If you’re considering releasing equity from your home, then give us a call today for a no- obligation chat, and we can review the most suitable options for you and your current circumstances.

Question 11

What Protection Policies Can You Support Me With?

Accepted Answer

It’s important to review your protection needs, to ensure that if you died or became severely unwell, yourself and your loved ones would be taken care of financially – including, able to maintain any mortgage payments and essential expenditure.

Typically, the way in which they work is that premiums are paid throughout the fixed term, and upon death or diagnosis of a critical illness, a pre-agreed sum of money will be paid out.

It’s also important to understand the levels of protection you require in a business environment if you’re a keyperson. Again, if the worst happened, you could rest assured that your colleagues and employees would be able to continue even if you were no longer able to work.

We currently offer: Key Person Cover, Share and Partnership Protection, Relevant Life Cover, and Executive Income Protection.

If you’d like to discuss your protection options or review your current policies, then do get in touch today.

Our most asked questions answered.